Politics

Why are Penang's policies designed to benefit the few, not the many, asks Gerakan

GEORGE TOWN: Fresh from allegations that the Penang government is resorting to 'jumbo land sales', Penang Barisan Nasional has claimed the former only designs policies "to benefit a few and not the many."

State BN chairman Teng Chang Yeow said, in the past nine years, the DAP-led state government has lived up to its new motto as the 'Developers Action Party' instead of the Democratic Action Party.

"Several land sale deals in the past have shown that much leeway was given to some developers and not the deserving people, particularly the lower-income groups.

"It seems that the state government is a government that designs policy only to benefit a few and not the many," he told a press conference at the state Gerakan headquarters here today.

On Monday, Teng had told newsmen that the Penang government was resorting to 'jumbo land sales' in the last nine years since it came into power. He had produced figures to show that the state government had sold 2,178.72ha of state land compared to 1,074ha under BN in 40 years.

He had also said that based on calculations of state land sold by the state government, the Penangites were losing an average of 20.4ha of land a month or 0.68ha a day, which can be used to build 204 low- and medium-cost housing units (based on the current density of 120 units per acre), which cost RM72,500 each.

He had also listed down 16 land sale deals by the Penang government since 2010 until last year.

Teng however singled out 14 land sale deals, which he claimed only four were transacted through open tender system.

"What about the remaining land sale deals? Were they also conducted through the state's often-preached open tender system?

"Also, the payment terms for the land sale deals are not made public contrary to the state government's call for competency, accountability and transparency," he added.

Teng said the above could be seen in at least two land sale deals -- Ivory Group's purchase of the Bayan Mutiara land and Aspen Group's purchase of the Batu Kawan land.

He demanded to know if the Penang government, the Penang Development Corporation or Chief Minister Incorporated have fully collected RM1.07 billion from Ivory over the purchase of 40.8ha of land sale back in 2011.

"Did the agreement signed between PDC and CMI with Ivory allow for payment over a period of five years, from 2011 to 2016? Is it true that the first payment was made in 2014 with the amount of RM188 million and the second payment was made in 2015, at RM230 million? Has the balance since been settled by Ivory? Has there been an extension of time for payment of the entire amount?

"Did the state government or CMI or PDC impose that Ivory should complete their reclamation of 14ha of land in four years from the date of signing the purchase agreement? Has Ivory completed it yet? Is there a breach of agreement? Has there been any punitive action taken by the state government or CMI or PDC?" he asked.

Teng also questioned if the Penang government, PDC or CMI were aware that Ivory was a 49 per cent shareholder of Aspen Vision Land Sdn Bhd, and whether it was true that the state government through PDC or CMI also sold 98ha of land in Batu Kawan in 2014 without tender.

"Did the state government, PDC or CMI realise when PDC or CMI or the state government sold the land to Aspen in 2014, their 49 per cent shareholder had just paid the first installment for Bayan Mutiara?

"Did the state government or PDC or CMI conduct due diligence on Aspen before selling the land since their 49 per cent shareholder is Ivory, which has yet to settle their purchase of Bayan Mutiara?

"Has Aspen paid the purchase of RM484 million in installments over the last three years since the agreement was signed in 2014, which allowed payment over five years? Mathematically speaking, shouldn't Aspen be paying approximately RM96.8 million a year for five years?

"Is it true that PDC or CMI or the state government had received RM25 million i

n 2015 and RM25.4 million in 2016 from Aspen for the purchase of the land? Wasn’t the payment received in 2015 and 2016 considered a 'short change' since mathematically, Aspen should be paying RM96.8 million a year?" he further enquired.

Teng also demanded to know if it was true the state government or PDC or CMI had given leeway to some developers.

"Why shouldn't the same leeway be given to the lower-income tenants of Rifle Range flats who were locked out over some problems such as rental arrears? Why the need to punish the poor?

"We demand the state government come clean on all the queries raised," he added.

The New Straits Times has gotten in touch with representatives from Ivory and Aspen and are awaiting for their responses to the queries raised by Teng.

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